After 7 years of trading cryptocurrencies, from a loss of 800,000 to achieving financial freedom, I have summarized 5 'iron rules not shared by crypto traders'. #币圈暴富
Let me introduce myself:
I am an 'old player' in the crypto world, having struggled for 7 years—no, I should say I have now become a free person who sings like a liberated farmer.
Back when I entered the market with 8,000, I foolishly invested everything in altcoins, and at my peak, I lost 5 million...
During the times when I doubted life, I even considered selling tea eggs, but the tea egg vendor told me: 'You might as well continue trading cryptocurrencies; don’t take my job.'
Later, after surviving bull and bear markets and going through waterfalls, I finally summarized a set of rules for trading cryptocurrencies that helps avoid losses and even allows for occasional profits.
1. Divide your capital into five parts; don’t panic if you make a mistake
Never go all in!
Divide your principal into 5 parts and only use 1 part at a time.
What does this mean? If you make a mistake once, you will lose at most 2% of your total capital; if you make 5 mistakes, you’ll lose 10%.
This is like going to a casino with just a little pocket change; if you lose, you can still treat yourself to a cup of milk tea.
2. The market is like dating; don’t go against it
When prices drop, there are always people shouting 'It's the bottom, it's the bottom'… don’t listen; that’s a trap.
When prices rise and then correct, they start shouting 'It’s over, it’s going to crash'… actually, that’s a golden opportunity.
The market has a rhythm; go with it, don’t sing off-key.
3. See a huge spike and want to jump in? You’re asking to get beautifully slaughtered
Don’t touch coins that spike 3 times in the short term.
If it stagnates at a high, it’s likely to plummet afterward; if you jump in, you’re just helping others get out.
4. MACD is an old friend; entry and exit depend on it
It’s fine if you don’t understand candlestick patterns; just learn MACD:
Entry: When DIF and DEA cross above the 0 axis, and then break through the 0 axis—like a dog suddenly jumping out of a mud pit, it could turn into a dark horse.
Reduce position: When MACD crosses below the 0 axis and starts to go down, get out!
MACD may look like a scientific experiment, but it’s actually a lifesaving tool for candlestick patterns.
5. Those who average down are emotional; only those who increase their position are professionals
Averaging down while losing: you’re an emotional player; when the market drops, you drop even more, and it never ends.
Increasing position while making money: this is the thinking that goes with the trend; following the path of victory will prevent you from getting lost.
Additionally, remember to observe the relationship between volume and price:
Low volume breakout = opportunity
High volume stagnation = run!
The crypto world is not a paradise for workers; it’s a battlefield for high-IQ players.
